IFM Investors’ Anita Costa, a portfolio manager on the firm’s $43.7 billion listed equities team, says conditions are ripe for smaller companies.
Like many who work in finance, IFM Investors’ Anita Costa got her first peek into the exciting rush of the stockmarket from watching the 1987 cult classic movieAn avid economics and mathematics student during high school, Costa found herself and classmates repeating the famous line “greed is good” from the movie’s villain Gordon Gekko, immortalised by Michael Douglas.Dominic Lorrimer
Although IFM doesn’t publicly disclose fund performance, according to a report released in November, the small cap team still managed to outperform its annual benchmark and started the new fiscal year “with a long-term, 10-year track record of 4.2 per cent per annum alpha”.Year to date, the asset class has only slightly underperformed the broader sharemarket. The benchmark returned 3.4 per cent versus the ASX 200’s 4.1 per cent.
She also likes the “very experienced” management team. “They’re incentivised by the share price for their own [long-term incentives] and the balance sheets has now been repaired. They’ve got high cash flow generation so the earnings upside is basically giving a significant valuation upside for us.” One example of putting this into practice is when Costa started researching Treasury Wine Group back in 2014 when she was working as an analyst for Fidelity International on the Australian equities team.was appointed to run the now $10.1 billion Australian wine exporting giant that counts the famous Adelaide winemaker Penfolds among its labels. At the time, the shares were trading at about $4.It last traded on Friday at $14.05 a share and reported $1.
On the market outlook, Costa, who describes herself as naturally optimistic, says, “things should be starting to pick up” after the
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Investors aren’t ready to quit inflation yetWednesday’s much-awaited consumer price index result could make the case for another RBA interest rate increase.
Read more »
Why this is the end of the world investors once knewExpert James Aitken warns that national security is the macro variable that will influence returns in the long run. And interest rates are going up.
Read more »
Australia to launch sovereign green bond next yearThe chief executive of the builder’s parent company told customers of his ‘heavy heart’ as it was announced the home building company will enter a five-week administration, affecting 730 builds.
Read more »
Labor promises to ‘grab this opportunity’ to become renewable energy superpower‘To see this at the heart of government planning is an overwhelming relief,’ Energy Council says, while investors warn of impact from US energy package
Read more »
Why VC firm Bailador says fintechs are facing the same problems as MilkRunStart-ups with inherently low margins will need to convince investors they can break even in a tough fundraising environment.
Read more »
Business leaders call for CBI to disband in wake of allegationsLobbying group ‘run its course’ as top firms leave after Guardian revelations over alleged sexual misconduct
Read more »